Abstract
The "green" marketplace is one of the fastest growing, most dynamic sectors of the US economy. In this report, Mintel examines the size, scope, and growth of the green consumer marketplace, as well as driving forces that will shape its future. The report keeps an eye toward expected changes sector by sector, as well as short-term and long-term outlooks for the market as a whole.
Mintel explores the current trends and future outlook for eight key sectors of the green consumer marketplace, including personal care products, home building and home improvement supplies, electronics and appliances, automobiles, and travel.
Mintel' s exclusive consumer research identifies four types of green consumer: Super Greens, True Greens, Light Greens and Never Greens. A threefold increase in the ranks of the Super Greens and True Greens in just 16 months has driven growth in all sectors of the green marketplace. This report explores the special role of 18 to 24 year olds and college students in adoption of new green product categories, as well as the sometimes surprising influence of demographic factors such as race, ethnicity, education and household income.
In a new take on the green marketplace, Mintel moves beyond demographic categories to explore how green consumers think, identifying the lifestyle choices and personality characteristics that most closely relate to green behavior. These are the insights marketers need to reach out directly to core green lifestyle consumers.
In addition to a broad array of quantitative data presented for this report, Mintel conducted qualitative research with respondents who described themselves as having already made lifestyle changes due to concerns about the environment. Mintel' s qualitative research explores the motivations that drive consumers toward green purchases, as well as the barriers to green shopping for different types of consumers, such as price premiums, perceptions of effectiveness and quality, and the critical importance of mainstream distribution.
Table of Contents
- Scope and Themes
- Definition
- Consumer research conducted for this report
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Drivers and corporate developments
- Climate change leads environmental concerns
- Corporations scramble for "green" investing dollars
- Slowing economy and rising fuel prices spur demand for energy efficiency
- Health and safety concerns bolster the market
- Market in transitional phase as green products mainstream
- Green personal care goes corporate
- Automakers scramble for position in green future
- Consumer influences
- Green consumers optimistic but skeptical
- Consumers believe that "green" products work
- Most consumers not willing to search for "green" products
- Tolerance of price premiums at 10% or less
- Efficacy, awareness, habit key issues in qualitative research
- "Greenwashing" concerns reinforce need for more objective standards for "green" products
- Demographics of Green living
- Young adults key targets for cutting-edge "green" products
- Asians lead; blacks lag in environmental interest
- Students and college graduates committed to "green" lifestyle
- Households with children pose a challenge for "green" marketers
- "Green" lifestyle transcends demographics
- Low-income households need not be excluded from the "green" marketplace
- The future of Green living
- Interest in buying "green" for major purchases skyrockets
- Marketing of multiple values will ensure success of "green" products
- The future is "green"
- Market Drivers
- Climate change continues to hold public attention
- Figure 1: General attitudes toward environmental concerns, December 2007
- Green investing dollars pour forth
- Stagnant economy and rising fuel prices spur demand for energy-efficient
products; limit willingness to pay
- Figure 2: Willingness to pay extra for "green" products, December 2007
- Product health and safety concerns spike following rash of recalls of
Chinese imports
- Figure 3: Attitudes toward health benefits of "green" products, by gender, December 2007
- Large corporations enter the green marketplace in force
- Green products linked to concepts of health and quality
- Market Size and Trends
- The LOHAS Market
- Figure 4: Graph: LOHAS "green" market size, by segment, 2005
- The U.S. Healthy Products, Healthy Planet Market
- Figure 5: HP2 market size and forecast, at current and constant prices, 2002-12
- The Natural Products Marketplace
- Figure 6: Sales of natural products through conventional FDM and natural supermarkets, segmented by product type, 2004 and 2006
- Market Segmentation
- Introduction
- Food and beverage
- Figure 7: Sales of natural food and drink products at FDM and natural supermarkets, at current and constant prices, 2004-08
- Green personal care growing 20% annually
- Pet foods and supplies
- Household cleaning products
- Clothing and linens
- Building, building materials and home improvement supplies
- Certification systems blossom
- Green building gets pop culture boost
- Housing bubble bursts
- Local mandates
- Costs of green building shrink
- Solar is hot
- Green design goes from exception to rule
- Electronics and appliances
- Industry faces substantial sustainability and power consumption issues
- New products ahead
- CE recycling goes mainstream
- Major appliances
- Cars and trucks
- Figure 8: Price premiums and estimated fuel savings for hybrid versus conventional passenger vehicles, 2008
- Consumer services
- Climate change concerns drive market for greener air travel
- Carbon offsets to ease guilt
- Hotels
- Car travel
- Finding and booking green travel
- Super/True Green Population Tripled over 16 months
- Figure 9: Change in frequency of "green" consumer population, August 2006-December 2007
- Awareness and Use of "Green" Consumer Goods
- Awareness of "green" household consumables
- Figure 10: Frequency of purchasing different categories of "green" products, December 2007
- All product categories show greater penetration among Asians and Hispanics
- Education most important for awareness of established "green" categories
- Awareness of "green" durable and infrequently purchased consumer
consumables
- Figure 11: Influence of "green" factors on major purchases, by category, December 2007
- Youngest and Oldest Core of "Green" Market in Online Population
- Introduction
- Green categories by age
- Figure 12: Frequency of buying "green" products, by age, December 2007
- Attitudes toward recycling, pollution, and premiums
- Figure 13: Environmental attitudes, by age, May 2006-June 2007
- Interest in conservation tends to increase with age
- Figure 14: Environmental behaviors, by age, December 2007
- Seniors lead in "green" shopping choices
- Figure 15: Environmental shopping behaviors, by age, December 2007
- Interest in "green" shopping growing fastest among seniors
- Figure 16: Influence of "green" factors on CE products, by age, December 2007
- The Impact of Household Income
- Introduction
- Attitudes toward recycling and pollution
- Figure 17: Environmental attitudes, by household income, May 2006-June 2007
- Green shopping by the rich and poor
- Figure 18: "Green" shopping habits, by household income, May 2006-June 2007
- Race and Ethnicity
- Introduction
- Figure 19: Frequency of buying "green" products, by race/ethnicity, December 2007
- Attitudes toward recycling and pollution
- Figure 20: Environmental attitudes and behavior, by race/ethnicity, May 2006-June 2007
- Looking forward, "green" factors to play a larger role
- Figure 21: Influence of "green" factors on purchases of CE products, by race/ethnicity, December 2007
- The Impact of Education
- Introduction
- Figure 22: Frequency of buying "green" products, by education level, December 2007
- Figure 23: Frequency of buying "green" products, by student status, December 2007
- Attitudes toward recycling and pollution
- Figure 24: Environmental attitudes, by education level, May 2006-June 2007
- Willingness to sacrifice convenience or income
- Figure 25: Environmental behaviors, by education level, December 2007
- Households with Children
- Introduction
- Figure 26: Environmental attitudes, by presence of children in the household, May 2006-June 2007
- Convenience is a must for families with children
- Figure 27: Environmental shopping behaviors, by presence of children in the household, December 2007
- How do Greens Think?
- Introduction
- Figure 28: Environmental attitudes, by personality traits, May 2006-June 2007
- Reasons for Buying or Not Buying Green
- Introduction
- Effectiveness/quality
- Figure 29: Attitudes toward effectiveness of "green" products, December 2007
- The majority of respondents do not see "green" products as safer
- Figure 30: Attitudes toward health benefits of "green" products, by household income, December 2007
- Health and savings vs. environmental concern
- Figure 31: Main reasons for "green" shopping, by gender, December 2007
- Figure 32: Main reasons for "green" shopping, by race/ethnicity, December 2007
- Availability
- Figure 33: Consumer experience with the availability of "green" products, December 2007
- Figure 34: Consumer experience with the availability of "green" products, by age, December 2007
- Will consumers pay more for "green" and energy-efficient products?
- Figure 35: Attitudes toward the cost of "green" products, by gender, December 2007
- Figure 36: Attitudes toward the cost of "green" products, by age, December 2007
- Figure 37: Attitudes toward the cost of "green" products, by household income, December 2007
- Figure 38: Attitudes toward the cost of "green" products, by race/ethnicity, December 2007
- What is an acceptable premium for "green" products?
- Figure 39: Willingness to pay extra for "green" products, by age, December 2007
- Figure 40: Willingness to pay extra for "green" products, by HH income, race/ethnicity, presence of children, and student status, December 2007
- How Do We Know It' s Really Green?
- Figure 41: Attitudes toward the effectiveness of "green" shopping, by race/ethnicity, December 2007
- More standards needed
- "Greenwashing" concerns provide incentives for industry-led standards
- Results from Mintel' s Qualitative Survey
- Introduction
- Figure 42: Descriptions of "green" lifestyle interviewees, January 2008
- Environmental concerns
- "Green" shopping commonalities in qualitative study
- Availability and awareness problematic for "green" shoppers
- Figure 43: Availability and awareness of "green" products, by respondent and location, January 2008
- Habits are hard to break
- Figure 44: "Habit" purchasing, January 2008
- Many see link between personal health and planetary health
- Figure 45: Respondents' thoughts about effectiveness and quality of "green" products, January 2008
- Product quality and function overriding issues for some
- Figure 46: Effectiveness and quality of "green" products, January 2008
- Prices need to be competitive
- Figure 47: Respondents' willingness to pay extra for "green" products, January 2008
- A "Green" Future
- Green market to lose trendiness
- Christian conservatives joining the "green" movement
- Fair trade and local to become the new "green"
- Fair trade
- Local
- Appendix: HP2 Market Detail
- Figure 48: HP2 market detail, 2005
- Appendix: Trade Associations
